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Brunswick Corporation
$4.7B
Market Cap
33.5
P/E
0.67
PEG
8.0%
ROCE
-7.7%
ROE
1.40
D/E
5.8%
OPM
-20.1%
% from 52W High
40
α RS
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Currency-adjusted total returns for BC including FX impact
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About

Brunswick Corporation designs, manufactures, and markets recreation products in the United States, Europe, the Asia-Pacific, Canada, and internationally. The company operates through four segments: Propulsion, Engine P&A, Navico Group, and Boat. The Propulsion segment provides outboard, sterndrive, inboard engines, propulsion-related controls, rigging, and propellers for boat builders through marine retail dealers under the Mercury, Mercury MerCruiser, Mariner, Mercury Racing, Mercury Diesel, Avator, and Fliteboard brands. The Engine P&A segment offers engine parts and consumables, electrical products, boat parts and systems, and engine oils and lubricants through aftermarket retailers, dealers, distributors, and original equipment manufacturers for marine and non-marine markets under the Mercury, Mercury Precision Parts, Quicksilver, and Seachoice brands; and distributes marine parts and accessories. The Navico Group segment provides products and systems for the marine, recreational vehicle (RV), specialty vehicle, mobile, and industrial markets, as well as aftermarket channels; and marine electronics, sensors, control systems, instruments, power systems, and general accessories under the Ancor, Attwood, B&G, BEP, Blue Sea Systems, C-MAP, CZone, Lenco, Lowrance, Marinco, Mastervolt, MotorGuide, Progressive Industries, ProMariner, Simrad, and Whale brand names. The Boat segment offers Sea Ray sport boats and cruisers; Bayliner sport cruisers, runabouts, and Heyday wake boats; Boston Whaler fiberglass offshore boats; Lund fiberglass fishing boats; Crestliner, Harris, Lowe, Lund, and Princecraft aluminum fishing; utility, pontoon, and deck boats; Navan premium exploration boats; and Thunder Jet and Lund heavy-gauge aluminum boats; and the freedom boat club, dealer services, and technology to the marine industry through dealers and distributors. Brunswick Corporation was founded in 1845 and is headquartered in Mettawa, Illinois.

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📊 MIXED Q1 2026: Revenue up 13% to $1.4B, EPS $0.70, 25% YoY growth.
Revenue & Profitability
Net sales of $1.4 billion increased 13% versus prior year. Adjusted EPS of $0.70 was up 25% year-over-year. Adjusted operating earnings rose 15%, with all segments delivering sales growth: Propulsion +17%, Engine P&A +14%, Navico +7%, Boat +6%. Free cash flow was negative in Q1 due to seasonal working capital and reinstated variable compensation. Full-year adjusted EPS guidance raised to $4.00-$4.50, reflecting lower tariff impact and first-quarter overdrive.
Outlook
Management expects a flat to slightly up U.S. retail market for 2026, supported by stable boating participation, lean dealer inventories, and improved incentives (down 100 basis points year-over-year). Tailwinds include 2025 rate cuts, lower pre-owned supply, and tariff advantages on Japanese competitors. Headwinds include geopolitical volatility, potential impact on non-U.S. markets, and caution among value consumers. Fuel price increases have not yet materially affected demand.
Growth Drivers
Key growth levers include continued Mercury outboard share gains (global orders up >15% year-over-year), new product launches (Sea Ray SLX 360, Boston Whaler Outrage series, Simrad NSO 4), and expansion of Freedom Boat Club (4 new locations, acquisition of Boston/Cape Cod franchise adding 21 locations). Engine P&A benefited from distribution share gains (Land 'N' Sea up 150 bps). Premium aluminum brands (Lund, Harris) and premium fiberglass (Boston Whaler, Sea Ray) outperformed value segments.
Balance Sheet & CapEx
Not discussed in this earnings call.
Margins
Adjusted operating margin expanded in all segments except Propulsion, which absorbed tariff impacts. Propulsion operating leverage exceeded 20% absent tariffs. Engine P&A margin improved 140 bps, Navico Group margin expanded 280 bps (47% operating leverage), and Boat segment margin grew 130 bps (25% leverage). Full-year margin guidance reflects disciplined cost management and lower tariff headwinds, with room for further improvement as footprint rationalization benefits materialize.
Key Risks
Key risks flagged include: dynamic tariff environment (net impact expected at lower end of $35-$45M, but refunds not yet factored), geopolitical volatility from Middle East conflict affecting consumer confidence in non-U.S. markets (Australia, New Zealand), and health of the value consumer. Fuel price increases, while historically low correlation, are monitored. The company remains cautious in guidance due to macroeconomic uncertainty.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-30
Q2 saw 8% sales growth and 34% higher adjusted EPS, with all segments contributing and recurring revenue businesses thriving. Full-year guidance was raised for revenue, margins, and free cash flow, despite inflation and tariff headwinds. Premium and core segments remain resilient.
Q1 2026 Q1 2026 2026-04-30
First quarter sales and earnings exceeded expectations, with all segments growing year-over-year and strong operating leverage offsetting tariff impacts. Premium products and recurring revenue businesses outperformed, leading to raised EPS guidance for 2026.
Q4 2025 Q4 2025 2026-01-29
2025 ended with sales and earnings growth across all segments, strong free cash flow, and improved market share despite tariff headwinds. 2026 guidance anticipates further revenue and earnings growth, supported by low inventories, new product launches, and favorable market tailwinds.
Q3 2025 Q3 2025 2025-10-23
Q3 delivered 7% sales growth and strong free cash flow, with all segments outperforming expectations. Guidance for 2025 remains unchanged, while 2026 is expected to see mid to high single-digit revenue growth and >25% EPS growth, supported by cost actions and innovation.
Q2 2025 Q2 2025 2025-07-24
Q2 sales and EPS exceeded guidance, with record free cash flow and strong segment performance despite tariffs and macro headwinds. Full-year sales and EPS guidance held, free cash flow outlook raised, and debt reduction targets increased.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
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Information Sources:
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